Global Automotive Rental And Leasing Market Size By Type (Passenger Car Rental, Passenger Car Leasing, Truck, Utility Trailer), By Mode (Online, Offline), By Lease (Open, Close), By End-User (Industrial, Corporate), By Geographic Scope And Forecast

Automotive Rental And Leasing Market Size And Forecast

Automotive Rental And Leasing Market size was valued at USD 208.81 Billion in 2024 and is projected to reach USD 421.02 Billion by 2031, growing at a CAGR of 7.37% from 2024 to 2031.

The rise in demand for adaptability, the acceleration of consumer awareness, the expansion of the used automobile industry, and the growth of new markets are all factors contributing to the expansion of the worldwide automotive rental and leasing business. A new trend in the Global Automotive Rental And Leasing Market is the growing usage of big data and IoT. The market is comprehensively evaluated in the study on the Global Automotive Rental And Leasing Market. The Global Automotive Rental And Leasing Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Automotive Rental And Leasing Market Definition

The Automotive Rental And Leasing Market consist of businesses of automotive equipment renting or leasing services by entities such as organizations, sole traders, and partnerships that provide passenger cars and truck/vans, utility trailers, and recreational vehicles (RV) without drivers and utility trailers. These businesses commonly contain a retail store like a department for automotive equipment renting and leasing. Several automotive equipment rental and leasing companies offer short-term rental or long-term leases, while others offer both types of services. Renting and leasing automotive equipment or vehicles is an attractive alternative for the automotive industry. It provides more advantages than outright purchases and provides the most extensive variety of equipment for added job versatility.

Automobile rental companies use contracts with automobile manufacturers to control their fleets. In several cases, these contracts have repurchase agreements claiming the manufacturer to repurchase the vehicle at a guaranteed depreciation rate during a particularized time. A lease agreement must be in writing and acknowledged by the lessor and the lessee. The lease contract can be signed in the style of operating leasing or finance leasing. Various consumers may prefer leasing as it permits them to easily exchange a vehicle and select a new model when the lease expires, enabling a consumer to drive a new vehicle every several years without the responsibility of selling the old vehicle, or possible repair costs after the expiry of the manufacturer’s warranty.

Global Automotive Rental And Leasing Market Overview

The Market are expected to be mainly driven by the increasing sales of electric vehicles over the forecast period. Leasing is increasingly being used as a fundamental method to drive electric vehicle businesses, especially in developed countries. By offering competitive monthly installment and vehicle replacement options, leasing compared with other purchasing processes significantly eases consumer attention around electric vehicle cost and technology obsolescence.

Furthermore, the increasing popularity of electric vehicles, e-commerce, increasing investment in big data and IoT, and blockchain penetration in automotive rentals and leasing sectors will further drive the growth of the market. There are two major trends observed in the Market. Automotive leasing and rental companies are utilizing technologies such as big data to enhance customer service and develop vehicle life. Big data allows companies to remind the driver to book a car for its service or repair engine oil.

This technology also helps leasing companies in decreasing driver risk and prevents the number of accidents, by giving the company insights into the driving practices and locations of its fleet. Another is the use of IoT by car rental and leasing companies in the maintenance and control of fleets. Using IoT technology, car leasing companies are capable of accessing odometer and diagnostic trouble codes in real-time that facilitate fleet maintenance. However, the growing popularity of on-demand taxi services is the major factor expected to restrict the growth of the Automotive Rental And Leasing Market.

The coronavirus disease (COVID-19) outbreak has also created a tremendous negative impact on the growth of this market across several countries in the world, principally in the countries where lockdowns is declared to control the disease. For instance, the US is severely hit by the coronavirus pandemic, and the Automotive Rental And Leasing Market has suffered a serious hit due to more stunted demand for their services. In France, the government had to negotiate and underwrite loans worth €225 million, for its car rental company Europcar.

Global Automotive Rental And Leasing MarketSegmentation Analysis

The Global Automotive Rental And Leasing Market is Segmented on the basis of Type, Mode, Lease, End-User, And Geography.

Automotive Rental And Leasing Market, By Type

• Passenger Car Rental
• Passenger Car Leasing
• Truck, Utility Trailer
• Recreational Vehicle Rental and Leasing

Based on Type, The market is bifurcated into passenger car rental, passenger car leasing, and truck, utility trailer, and recreational vehicle rental and leasing. Passenger car rental was the largest segment of the Automotive Rental And Leasing Market, estimated for 61.6% of the total in 2019, followed by truck, utility trailer, RV rental and leasing, and passenger car leasing. The growth of this segment is attributed to the numerous benefits associated with renting passenger cars such as lost cast traveling, affordability, comfort, and quality of life.

Automotive Rental And Leasing Market, By Mode

• Online
• Offline

Based on Mode, The market is bifurcated into Online and Offline. The offline segment was the largest segment of the Automotive Rental And Leasing Market, accounting for 50.6% of the total in 2019.

Automotive Rental And Leasing Market, By Lease

• Open
• Close

Based on Lease, The market is bifurcated into Open and Close. The open segment was the largest segment of the Automotive Rental And Leasing Market segmented by type of lease, estimated for 60.2% of the total in 2019. In an open-end lease, one can take on the vehicle’s depreciation risk. The total cost of ownership is not known until the vehicle is remarketed.

Automotive Rental And Leasing Market, By End-User

• Industrial
• Corporate

Based on End-User, The market is bifurcated into Industrial and Corporate. The industrial segment was the largest segment of the Automotive Rental And Leasing Market, estimated 56.5% of the total in 2019. It is also expected to be the fastest-growing segment in the Market segment over the forecast period.

Automotive Rental And Leasing Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world

On the basis of Regional Analysis, The Global Automotive Rental And Leasing Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. The Asia-Pacific was the largest region in the global Automotive Rental And Leasing Market, estimating 31.9% of the total in 2019 followed by Western Europe, North America, and then the other regions. The growth of this region is attributed to an increase in consumer preference for leasing a vehicle instead of buying a new vehicle.

Key Players

The “Global Automotive Rental And Leasing Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are The Hertz Corporation, Avis Budget, Daimler Group, LeasePlan, Toyota Financial Services, Honda Canada Finance Inc., GM Financial, Ford Credit, and Ally Financial Inc. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In May 2021, New York Place is the sixth city where Kyte, a new car rental service, has gone live. An app-based car rental service called Kyte delivers vehicles directly to customers.
• In Nov 2020, In order to provide leasing options for salaried individuals, working professionals, SMEs, public sector organizations, and corporate entities, Skoda Auto India teamed up with Orix Auto Infrastructure Services Ltd.
• In Oct 2020, For an undisclosed sum, Proses-owned OLX Group purchased the majority of CarSmile, a startup offering car leasing, and rental services in Poland. The funding will aid OLX’s growth in the new car market.
• In Aug 2020, In Delhi/NCR, Bengaluru, and Mumbai, Toyota Kirloskar Motor has launched its lease and subscription service. Toyota has partnered with Kinto under Toyota Financial Services, ALD Automotive India, and SMAS Auto Leasing India to put this into practice.

Report Scope

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Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes an in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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